Price Shopping – Who Benefits?
Ah no, Here we go again. Yes I am saying this buzzword. Why, you might ask? Well, allow me to explain this to everyone from homeowner to professional plumber. Nowadays it seems like every day, we in the professions of plumbing, mechanical and electrical contracting are hit with this buzzword non-stop. What does it mean?
Good question, because I certainly don’t know but I think I have a clue. I am assuming everyone that I talk to wants an estimate with your best (lowest) price and there is the deal! Well allow me to explain the false sense of security with this practice. No two businesses are the same! WAIT A MINUTE…. Did he just say what I thought he said? Let me repeat that again,
“NO TWO BUSINESSES ARE THE SAME!” Got it. Good, lets continue…
The model that a business operates with is tied to 4 basic functions: labor, material, overhead and profit. The concept is pretty basic yet it governs every business from Google to the handyman. So as a business grows so does its expenses which affects the price a business charges to provide a good or service. I realize this a very basic over view but it does show how all businesses function and that will never change. The laws of accounting can’t be made to show something that is not there.
Look at the value they deliver for what they provide!
So the next time you look for a plumbing or HVAC professional to provide a service to you don’t look at the price they are charging, but rather look at the value they deliver for what they provide. In the end price shopping has no benefits to anyone. Remember this little saying ” The quality of a job is not important when the price is cheap.”